ATHENS, March 26 (Reuters) - Greece will raise its gross monthly minimum wage by 4.5% from April, the sixth rise in four years, it said on Thursday, as it seeks to restore living standards battered by
Greece to Implement Sixth Minimum Wage Increase Since 2020 Amid Crisis
Overview of Greece's Minimum Wage Policy and Economic Recovery
Recent Minimum Wage Increase Announcement
ATHENS, March 26 (Reuters) - Greece will raise its gross monthly minimum wage by 4.5% from April, the sixth rise in four years, it said on Thursday, as it seeks to restore living standards battered by a decade-long financial crisis and shield consumers from rising energy costs amid the Iran conflict.
Background: Greece's Economic Crisis and Recovery
Impact of the 2009-2018 Debt Crisis
Greece is recovering strongly from a 2009-2018 debt crisis that wiped out nearly a fourth of its output and slashed pensions and wages as part of austerity in exchange for 290 billion euros ($335 billion) in bailout loans.
Government Measures to Boost the Economy
The centre-right government of Prime Minister Kyriakos Mitsotakis, who won a second term in 2023, has cut taxes and social security contributions and increased the minimum salary for full-time employees five times since 2022 as it targets a minimum monthly salary of 950 euros by 2027.
Challenges Facing Greek Households
Inflation and Purchasing Power
But purchasing power in the country still trails the European average and is taking a fresh blow from surging energy prices stemming from the ongoing U.S.-Israeli war with Iran and fueling inflation.
Government Interventions to Support Citizens
Greece has imposed a cap on profit margins on fuel and some supermarket goods and last week announced subsidies for fuel and fertilizers and ferry ticket discounts.
Details of the New Minimum Wage Increase
Announcement by Prime Minister Mitsotakis
"To further support the people, we will jointly decide today a new rise in the minimum wage from April 1," Mitsotakis told a cabinet meeting on Thursday. He said his labour minister will propose that the gross monthly minimum wage be increased to 920 euros from 880 euros from April 1.
Approval Process
Consultation with Stakeholders
The government consults employers and employees before setting the minimum wage which needs cabinet approval to take effect.
Additional Information
($1 = 0.8649 euros)
(Reporting by Angeliki Koutantou and Renee MaltezouEditing by Keith Weir)
